How “Rules of Thumb” can Corrupt your view of your Business Value.

How “Rules of Thumb” can Corrupt your view of your Business Value.

“My business is worth $400,000!”  How do you know?  You just read an article that said that businesses in your industry were worth “2 times revenue”.

The problem, your business with $200,000 in revenue ($200k x 2=$400k) has lost money every year for the last five.  Guess what?  Your business isn’t worth $400,000, in fact in might not be worth anything.

Rules of thumb can be helpful, but almost never for understanding what your business is really going to be able to sell for.

This video originally appeared at: https://www.youtube.com/watch?v=l7jyibQWJJQ.

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